Acquisitions

Acquisitions

Switch Business as a Buyer's Agent

Switch Business can also operate as a buyer’s agent. This differs from the normal sales process for businesses where the broker is engaged by the
seller, a value is set on behalf of the seller and a success fee is paid by the seller.

Switch Business would be engaged by you as the buyer, for an agreed success fee or retainer plus reduced success fee, to approach either a specified
target business or any business in a specific sector. By using Switch Business for this process, your identity as the purchaser can remain
confidential during the preliminary period. Our experience is that we have the ability to engage in discussions with a target who may consider
selling, however if they were approached directly by an interested buyer, they may consider it to be a threat, and would be reluctant to provide
any information.

We would expect that a purchase completed utilising Switch Business as a buyer’s agent would likely result in the net cost of the targeted business
being significantly less than if the business was valued on behalf of the seller and marketed on behalf of the seller.

While offering the services of a buyer’s agent is not the “norm” in the New Zealand market, it is widely accepted in the US, European and Australian
markets.

Acquisition Process

The acquisition process is really a mirror image of the Sales Process. Click here for more information.

Once Switch Business has obtained the authority to act on your behalf we will obtain a full brief on what you require. If there is a specific business
you would like to target or just a specific sector we will agree on the search parameters. Once agreed we will approach the business on your
behalf without disclosing your identity (unless we both agree to). If the business owner is interested in looking at an offer on their business
we will obtain all relevant information and conduct an appraisal on the business to determine its market value.

We would then discuss with you what we believe would be suitable terms and conditions for an offer. Following agreement we would draft up the offer
and (if acceptable to you and your advisors), present your offer for consideration.

This will generally be in writing as a Sale and Purchase Agreement or a Heads of Agreement. The agreement sets out all the terms and conditions
of the offer and will almost always be dependent on you completing due diligence to your satisfaction. Once both parties have signed the contract
there are now various conditions that need to be satisfied and we would work with your team of professional advisors to ensure that all conditions
are satisfied.

If you wish to have a confidential, obligation free chat or come in for a coffee, contact us today.